PennantPark Floating Rate Capital (NYSE:PFLT) Q2 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Art Penn - Chairman and Chief Executive Officer Richard Cheung - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenberg Ryan Lynch - KBW Kevin Fultz - JMP Securities Operator Good morning, and welcome to the PennantPark Floating Rate Capital's Second Fiscal Quarter 2022 Earnings Conference Call. Today's conference is being recorded. At this time, all participan ...

[PART I. CONSOLIDATED FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20CONSOLIDATED%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The company's consolidated financial statements show increased assets and net assets, with net investment income rising but overall net asset growth from operations declining due to investment losses [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets and liabilities increased as of March 31, 2022, leading to a rise in net assets while net asset value per share remained constant Consolidated Statements of Assets and Liabilities Highlights (in thousands) | Metric | March 31, 2022 (unaudited) | September 30, 2021 | | :--- | :--- | :--- | | Total Investments (at fair value) | $1,192,613 | $1,081,619 | | Total Assets | $1,287,891 | $1,170,856 | | Total Liabilities | $767,904 | $680,245 | | Total Net Assets | $519,986 | $490,611 | | Net Asset Value per share | $12.62 | $12.62 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Investment income increased for the six months ended March 31, 2022, but net asset growth from operations declined due to a net realized and unrealized loss Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended Mar 31, 2022 | Six Months Ended Mar 31, 2021 | | :--- | :--- | :--- | | Total Investment Income | $50,971 | $40,169 | | Total Expenses | $26,867 | $20,136 | | Net Investment Income | $24,104 | $20,032 | | Net Realized and Unrealized (Loss) Gain | $(2,424) | $17,772 | | **Net Increase in Net Assets from Operations** | **$21,679** | **$37,804** | | Net Investment Income per Share | $0.61 | $0.52 | | Net Increase in Net Assets per Share | $0.55 | $0.98 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $29.4 million, driven by operations and capital transactions, partially offset by stockholder distributions Changes in Net Assets (Six Months Ended March 31, 2022, in thousands) | Component | Amount | | :--- | :--- | | Net Assets, Beginning of Period | $490,611 | | Net Increase from Operations | $21,679 | | Distributions to Stockholders | $(22,361) | | Net Increase from Capital Transactions | $30,057 | | **Net Assets, End of Period** | **$519,986** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used cash due to increased investments, while financing activities provided cash, resulting in a slight decrease in cash equivalents Cash Flow Summary (Six Months Ended March 31, in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(102,030) | $117,751 | | Net Cash Provided by (Used in) Financing Activities | $101,618 | $(107,745) | | Net (Decrease) Increase in Cash Equivalents | $(411) | $10,007 | | **Cash and Cash Equivalents, End of Period** | **$50,064** | **$66,573** | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments) The investment portfolio grew to $1.19 billion, primarily in first lien secured debt across 119 portfolio companies Investment Portfolio Composition by Fair Value (in thousands) | Investment Type | March 31, 2022 | September 30, 2021 | | :--- | :--- | :--- | | First lien secured debt | $1,031,932 | $934,418 | | Second lien secured debt | $1,035 | $8,949 | | Preferred & Common Equity | $159,646 | $138,252 | | **Total Investments** | **$1,192,613** | **$1,081,619** | - The portfolio was invested in **119 companies** with an average investment size of **$10.0 million** as of March 31, 2022[192](index=192&type=chunk) [Notes to Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's BDC structure, accounting policies, investment portfolio, debt facilities, and financial highlights including asset coverage [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's investment strategy, portfolio growth, income, liquidity, and critical accounting policies, highlighting market risks - The company's investment objective is to generate current income and capital appreciation by investing primarily in **floating-rate loans** to U.S. middle-market companies with annual revenues between **$50 million and $1 billion**[171](index=171&type=chunk)[172](index=172&type=chunk) - Management highlights risks from the **COVID-19 pandemic**, which could impact portfolio company performance, and the ongoing transition from **LIBOR to alternative rates** like SOFR, which could affect investment income and debt costs[178](index=178&type=chunk)[184](index=184&type=chunk) - For the six months ended March 31, 2022, the company invested **$448.4 million** in 23 new and 65 existing portfolio companies and received **$342.2 million** from sales and repayments[194](index=194&type=chunk) Results of Operations Comparison (Six Months Ended March 31) | Metric (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Investment Income | $51.0 | $40.2 | | Expenses | $26.9 | $20.1 | | Net Investment Income | $24.1 | $20.0 | | Net Realized (Losses) | $(12.3) | $(2.3) | | Net Change in Unrealized Appreciation | $14.0 | $34.6 | [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is highly exposed to interest rate risk, with 100% of its debt portfolio in variable-rate investments - As of March 31, 2022, **100%** of the company's debt portfolio consisted of **variable-rate investments**, making it sensitive to changes in interest rates like LIBOR[278](index=278&type=chunk) Annualized Impact of Hypothetical Interest Rate Changes | Change in Interest Rates | Change in Net Interest Income (in thousands) | Change in Net Interest Income Per Share | | :--- | :--- | :--- | | Down 1% | $(693) | $(0.02) | | Up 1% | $2,460 | $0.06 | | Up 2% | $8,231 | $0.20 | | Up 3% | $14,002 | $0.34 | [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** in providing reasonable assurance that required information is recorded, processed, and reported in a timely manner[282](index=282&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[283](index=283&type=chunk) [PART II. OTHER INFORMATION](index=54&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company, its Investment Adviser, and Administrator are not subject to any material legal proceedings - The company is not currently subject to any **material legal proceedings**[285](index=285&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company highlights risks from global uncertainty and increased leverage due to a reduced asset coverage requirement - The ongoing invasion of Ukraine by Russia and related sanctions have increased global political and economic uncertainty, which may have a **material adverse impact** on the company's portfolio[287](index=287&type=chunk) - The company operates with a reduced asset coverage requirement of **150%** (down from 200%), allowing it to incur more debt (up to a **2-to-1 debt-to-equity ratio**), which increases the risk of investing in the company[288](index=288&type=chunk)[290](index=290&type=chunk) - The company is partially dependent on its subsidiary, Funding I, for cash distributions to maintain its RIC status, but Funding I is limited by covenants that may restrict these distributions[291](index=291&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - None[295](index=295&type=chunk) [Defaults Upon Senior Securities](index=56&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - None[296](index=296&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including CEO/CFO certifications and the Joint Code of Ethics

PennantPark Floating Rate Capital (NYSE:PFLT) Q1 2022 Earnings Conference Call February 10, 2022 10:00 AM ET Company Participants Art Penn - Chairman and Chief Executive Officer Richard Cheung - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Kevin Fultz - JMP Securities Paul Johnson - KBW David Miyazaki - Confluence Investment Management Operator Good morning and welcome to the PennantPark Floating Rate Capital's First Fiscal Quarter 2022 Earnings Conference Call. Today's c ...

Investment Strategy - PennantPark Floating Rate Capital Ltd. primarily invests in Floating Rate Loans to U.S. middle-market companies, defined as those with annual revenues between $50 million and $1 billion [173]. - The company expects at least 80% of its managed assets to be invested in Floating Rate Loans, with first lien secured debt representing at least 65% of the overall portfolio [176]. - As of December 31, 2021, 99.9% of the debt portfolio consisted of variable-rate investments, which are typically based on a floating interest rate index such as LIBOR [184]. - The company generated revenue primarily from interest income on debt securities and capital gains, with interest generally payable quarterly or semiannually [190]. Financial Performance - Investment income for the three months ended December 31, 2021, was $26.3 million, an increase from $20.7 million in the same period of 2020, primarily due to portfolio growth [223]. - Total expenses for the three months ended December 31, 2021, were $13.6 million, up from $10.6 million in the same period of 2020, driven by increased performance-based incentive fees and debt-related expenses [224]. - Net investment income for the three months ended December 31, 2021, was $12.7 million or $0.33 per share, compared to $10.1 million or $0.26 per share in the same period of 2020 [225]. - The net increase in net assets resulting from operations for the three months ended December 31, 2021, was $14.4 million or $0.37 per share, down from $26.1 million or $0.67 per share in the same period of 2020 [229]. - Total investment income for the three months ended December 31, 2021, was $11,821,705, compared to $6,903,323 for the same period in 2020, representing a 71.5% increase [269]. - Net investment income for the three months ended December 31, 2021, was $4,504,759, up from $1,937,481 in the prior year [269]. Portfolio Composition - As of December 31, 2021, the company's portfolio totaled $1,179.8 million, consisting of $1,024.8 million in first lien secured debt, $4.4 million in second lien secured debt, and $150.5 million in preferred and common equity [194]. - The overall portfolio consisted of 115 companies with an average investment size of $10.3 million [194]. - The company had three portfolio companies on non-accrual as of December 31, 2021, representing 2.9% of the overall portfolio on a cost basis [194]. - The company had three portfolio companies on non-accrual status as of December 31, 2021, with potential for additional companies to be affected by the ongoing COVID-19 pandemic [182]. Debt and Financing - The annualized weighted average cost of debt for the three months ended December 31, 2021, was 3.6%, compared to 3.3% for the same period in 2020 [232]. - The Credit Facility had a weighted average interest rate of 2.4% as of December 31, 2021, compared to 2.3% as of September 30, 2021 [234]. - The company issued $138.6 million of 2023 Notes with an interest rate of 4.3% per year, increased from 3.8% due to a downgrade in March 2020 [240]. - The company plans to continue using debt capital and proceeds from public and private offerings to finance its investment objectives [177]. - The company has the ability to raise equity or debt capital through various means, including registered offerings and private offerings of securities [251]. Market Conditions and Risks - The transition from LIBOR to the Secured Overnight Financing Rate (SOFR) is ongoing, with uncertainties regarding its impact on the company's financial condition and results of operations [186]. - The company anticipates that the ongoing COVID-19 pandemic may adversely affect certain sectors of the global economy, impacting its portfolio companies and overall performance [181]. - The company has implemented a business continuity planning strategy to safeguard employee health and ensure operational continuity amid the pandemic [185]. Asset Coverage and Equity - As of December 31, 2021, the asset coverage ratio was 165%, down from 175% as of September 30, 2021 [183]. - Members' equity increased to $55,017,233 as of December 31, 2021, from $51,264,131 as of September 30, 2021 [267]. - The company declared distributions of $0.285 per share for total distributions of $11.1 million during the three months ended December 31, 2021 [273]. - The company intends to continue making monthly distributions to stockholders, subject to board approval [274]. Cash and Liquidity - As of December 31, 2021, the company had cash equivalents of $61.3 million available for investing and general corporate purposes [252]. - The company’s operating activities used cash of $82.4 million for the three months ended December 31, 2021, while financing activities provided cash of $93.2 million [253]. - Cash and cash equivalents as of December 31, 2021, were $35,582,572, an increase from $28,373,541 as of September 30, 2021 [267].

PennantPark Floating Rate Capital (NYSE:PFLT) Q4 2021 Earnings Conference Call November 18, 2021 9:00 AM ET Company Participants Art Penn - Chairman & Chief Executive Officer Richard Cheung - Chief Financial Officer Conference Call Participants Paul Johnson - KBW Mickey Schleien - Ladenburg Kevin Fultz - JMP Securities Operator Good morning and welcome to the PennantPark Floating Rate Capital's Fourth Fiscal Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, all parti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00891 PENNANTPARK FLOATING RATE CAPITAL LTD. (Exact name of registrant as specified in its charter) MARYLAND 27-3794690 (State or o ...

PennantPark Floating Rate Capital (NYSE:PFLT) Q3 2021 Earnings Conference Call August 5, 2021 9:00 AM ET Company Participants Arthur Penn - Chairman and CEO Richard Cheung - CFO Conference Call Participants Mickey Schleien - Ladenburg Thalmann Ryan Lynch - KBW Devin Ryan - JMP Securities Operator Good morning and welcome to the PennantPark Floating Rate Capital's Third Fiscal Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, all participants have been placed in a lis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00891 PENNANTPARK FLOATING RATE CAPITAL LTD. (Exact name of registrant as specified in its charter) MARYLAND 27-3794690 (State o ...

PennantPark Floating Rate Capital Limited (NYSE:PFLT) Q2 2021 Earnings Conference Call May 6, 2021 9:00 AM ET Company Participants Art Penn - Chairman and Chief Executive Officer Aviv Efrat - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Paul Johnson - KBW Devin Ryan - JMP Securities Operator Good morning and welcome to the PennantPark Floating Rate Capital's Second Fiscal Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, all partic ...

03/31/2021 N E W Y O R K • C H I C A G O • H O U S T O N • L O S A N G E L E S Forward-looking Statements and Risk Factors This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies and results of our operations. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfil ...